TORONTO: Chery Automobile Co is readying one of its first electric vehicles for the Canadian market, a premium crossover with ice-resistant door handles, a heated steering wheel and a battery optimised for harsh winters in cities like Toronto or Montreal.
Pending certification progress, the automaker plans to start sales of the midsized Jaecoo ET premium crossover next year.
It's a rebadged version of a model that's sold in China and some overseas markets, with the price yet to be determined.
It's part of a lineup the Chinese automaker plans to roll out for the Canadian market, including an unspecified low-cost, entry-level car.
"We wanted to bring something premium so that we can really show what our company and our brands can do," Lindsay Collins, a brand manager at Chery Canada, told reporters at a briefing at the company's headquarters in the southeastern Chinese city of Wuhu.
"We really do have a wide range of products to bring to Canada."
The debut of the fully electric Chery Jaecoo - a portmanteau combining "jäger," meaning hunter in German, and the word "cool" - comes after Canada struck a deal with China allowing low-tariff imports of as many as 49,000 Chinese new-energy vehicles this year, a quota that increases annually.
Several carmakers plan to take advantage of that opening, including BYD Co and Geely Automobile Holdings Ltd.
The overseas push by Chinese auto manufacturers aims to offset a slowdown in their domestic market, which has led to oversupply and unabated price-cutting.
Canada also provides a testing ground for a possible expansion into the US in the future.
"Obviously there's a healthy chunk of demand right now in Canada, but the big prize would be the United States," said Mike Wall, an executive director at automotive research firm Mobility Global.
Currently, hefty tariffs and technology restrictions effectively block Chinese EVs from American roads, and United States lawmakers are pursuing legislation to make that ban permanent.
But Chery executives have expressed ambitions to enter the United States at some point, and analysts say any decision to manufacture in Canada would be with an eye to future exports targeting the United States.
Unlike its peers, Chery has for years focused on markets abroad such as the Middle East and Africa, and has a relatively muted presence in the overcrowded Chinese market.
It has been China's largest vehicle exporter for more than 20 years, accounting for nearly 20% of the country's car exports in the first nine months of the year.
Chery also has moved to set up assembly plants abroad in places like Spain and South Africa.
It's now considering plans to build a factory in Canada, putting one of China's biggest carmakers on the northern doorstep of the large and lucrative United States market.
For now, Chery is focusing on getting its first products for Canada right.
Earlier this year, it brought nearly two dozen representatives of Canadian dealerships to the Beijing auto show as it worked to establish a sales network in Canada.
The carmaker has established its Canadian headquarters in the Greater Toronto Area, and plans to start distribution in major cities in three key provinces: British Columbia, Ontario and Quebec.
Given the limited quota of less than 60,000 vehicles for 2027, Chery's Jaecoo and Omoda brands aim to start with around a dozen dealers, even though about 40 have approached it, according to Farzad Salehi, the executive vice president for the marques in Canada.
"We're taking a calculated step," said Salehi, referring to Chery's possible allocation under the quota. "We want to see how much volume we can get."
Equipped with a state-of-the-art battery from Contemporary Amperex Technology Co Ltd, the Jaecoo's range on a full charge is expected to be about 525km (326 miles), which is comparable to Tesla Inc's standard Model Y and GM's Chevrolet Equinox EV.
At the briefing in Wuhu, Chery showcased a Jaecoo with a sleek, silver-hued body and a distinct walrus-mustache grille parked on a virtual ice floe.
The car comes equipped with advanced driver-assistance technology and intelligent air suspension, and has earned a five-star rating from Europe's leading safety testing and rating organisation.
It's also designed to withstand the rigours of Canada's subzero winter temperatures.
"We know how to develop the car to meet the toughest safety standards" around the world, said Charlie Zhang, a vice president at Chery responsible for international operations.
"In Canada, the heating for steering wheels, windshields and the seats are super important."
